Trade setup for 17th Jan



 Today is a very important day as we have a lot of news which will be factored in. First, we had 2 major companies which came out with numbers. HCL tech and HDFC bank came out with numbers but there is no firework in the results. The results were as expected. So it may open flat or might see a mild movement. There may not be a huge movement.

Auto stocks are in focus as there is a huge push for EVs. Delhi has mandated all delivery services to use EV only. So auto stocks might be under some pressure with the fear that other cities and states may also follow that. So keep an eye on bajaj auto, hero, TVS etc which will feel the heat.

In the US, JP Morgan came out with numbers and the stock fell more than 6% on Friday. So the earning sentiment in the banking sector is now damped. Today HDFC bank performance will lead the sentiment in the banking earning. This month, banknifty has been the leader of the rally. So has the earnings been factored into it?

This week Murugan stanley and goldman sacks will come out with their numbers. 

The covid cases are again causing havoc. Many cities have implemented the weekend curfew and as usual, the biz was impacted. For the 3rd straight day, we crossed 2lk cases but this time the severity is less as we are used to it for 2 years now and news channels are not able to get TRP by this anymore. :)

I feel markets are going to fall after the budget as this budget will be mostly targeted to the middle and poor class which is mostly impacted due to covid and FED is most likely to raise rate soon. There may not be any sops for the corporates.

Markets might recover after the UP election as all reports say that BJP will retain the power in the state. 

I will be taking the trades accordingly. This is my school of thought. Please do research before taking any trade.

GAIL top official has been arrested for taking bribe. So today that might be under pressure.

This week 24% of companies in nifty are coming out with numbers,

MY TRADES

  1. I have sold huge positions of 17900, 800, 700 pe for the month. It is a clear buy on dips market that is playing out. Every dip is getting bought.
  2. I have taken short positions in hdfc bank and long position in banknifty. Today if hdfcbank shoots up and banknifty falls then I will be in loss which is most unlikely. This is how I do pair trading for earnings. You can do the same with RIL and nifty as well.
INTERNATIONAL MARKETS
  1. US markets were mixed on Friday. On Friday, dow fell 400+ points and recovered half of that.
  2. Europe closed in the red.
  3. Today the Asian markets are mixed. Japan is in the green but korea and hkg is in red. SGX is suggesting a -ve start of 70 points. I will be buying the dips as that may recover like before.
CRUDE AND $
  1. Crude is at $86 which is high for India.
  2. $ is at Rs 74. 
FII AND DII
  1. FII are preferring to stay away from the markets. On Friday again they have sold for 1600cr and DII bought for 371cr.

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